From Nasdaq:

Crude oil prices skyrocketed by more than 4% following U.S.-led airstrikes on Houthi targets in Yemen. Brent crude surged 4.1% to $80.50 a barrel, and Nymex WTI rose 4.2% to $75.02 a barrel. The USO ETF, which tracks light-sweet crude, was up 3.5% pre-market following a 1.7% gain the day before.

Tensions in the Red Sea and Arabian Gulf have driven oil shipping tensions. An Iranian-seized oil tanker and U.S. and U.K. airstrikes on Yemen have increased global tensions. President Joe Biden said, “I will not hesitate to direct further measures to protect our people and the free flow of international commerce as necessary.”

As a response to these airstrikes, Houthi rebels promised retaliation, stating that the U.S. attacks “won’t go unpunished”. An oil expert raised concerns about the Gulf of Oman and the Strait of Hormuz, a key choke point for oil flows.

With shares in oil stocks responding positively to the rise in oil prices, U.K. oil giant BP saw an increase of 1.3%, while Chevron and ExxonMobil surged by 1.3% and 1.5% respectively. The Energy Select Sector SPDR Fund, holding all U.S. oil majors and smaller producers and explorers, saw a pre-market trade increase of 1.8%.

Following the spike in crude prices, the price of RBOB Gasoline rose by 3.4% to $2.186, and heating oil jumped 3.4% to $2.7633. U.S. stockpiles of gasoline and distillates have surged for two weeks in a row, pushing the average price per gallon of gas at the pump to $3.08 in the U.S.



Read more: Oil Prices Soar As Stakes Raised In Red Sea Conflict: US-Led Coalition Strikes Houthis In Yemen